New Construction Presale vs. Spec Home: Which Option Is Best for You?

New construction homes are a source of excitement. But before you find your ideal property, you may be deciding between two exceptional options: presale homes and spec homes. Each type of home offers certain advantages, and the best fit will depend on your timeline and budget. You’ll also want to consider how involved you’d like to be in the design process.

Let’s take a look at how presale and spec homes differ and go over which option is right for you.

 

What is a presale home?

A presale home is a home you purchase before it’s built. The idea here is that you can collaborate with the builder on specific decisions like choosing a lot and selecting finishes like flooring, countertops, and fixtures. Presale homes are a wonderful option for buyers who want to make certain their residence captures their lifestyle and future needs.

Say you work remotely and plan to spend the majority of your time working right from your new home. You may want a floorplan with a large kitchen and a flex space for a home office—perfectly suited to your working needs. In this case, a presale home could be right for you.

If you’re thinking of buying a presale home, you should know that you won’t close until the build is complete. You will, however, be able to visit the site during construction in most cases. Talk to your builder for more information on costs and timelines, and plan to enjoy watching your vision come to life

 

What is a spec home?

A spec home, also known as a speculative home, is designed and built in speculation that a buyer will purchase the home at a later date. The finishes and features are preselected by the builder’s design team, which means you’ll see styles that appeal to a broad range of people. These homes are typically less personalized but still designed to be inviting and appealing to most.

If you’re on a short timeline (for instance, if you’re relocating for a new career opportunity), spec homes are excellent. They eliminate the waiting period associated with new construction and allow you to settle in quickly. Just know that they don’t offer as much flexibility in the way of personal design choices.

Spec homes are often a real draw for buyers who enjoy a specific builder’s portfolio, as the new construction will likely reflect the same style.

 

Key differences between presale and spec homes

If you find a builder you love, it might not matter whether you opt for a presale or a spec home. Still, you should know what you’re getting into as you plan your future. After all, the median length of homeownership is over 13 years—a three-year increase over the last decade.

 

Consider the main differences between presale and spec homes:

 

• Timing

Presale homes take months to complete, while spec homes can be move-in ready.

 

• Customization

Presale homes let you curate designs to your needs, whereas spec homes are built with preselected features.

 

• Certainty 

Spec homes let you see the final product before you buy, while presale homes require patience and trust during construction.

 

• Costs

Presale homes come at a premium expense over spec homes due to the upgrades and customization. 

 

Choosing between these two options ultimately depends on your priorities. Are you looking for a home that captures your personal vision, or do you prefer the elegant simplicity of a completed build?

 

What are the pros and cons of presale homes?

Presale homes are a wonderful option if you value personalization and can sit tight through the construction process. They’re good for buyers who want to plan ahead and play an active role in the design of their new home.

 

Pros of presale homes

• Customization

Presale homes give you the freedom to select finishes, layouts, and upgrades. For instance, you may choose to include a large pantry and custom shelving in your home to meet your storage needs.

 

• Lot selection

Maybe you prefer a quiet corner lot, or maybe you crave a space with sweeping views. With presale homes, buyers can often pick their preferred lot. 

 

• Long-term planning

Presale homes let you plan for future needs, like adding wider doorways, a low-threshold entry, or grab bars for easier access 

 

Cons of presale homes

• Longer timelines

Construction can take five to six months or longer. This means that to consider a presale home, you’ll need to be on a flexible timeline.

 

• Potential cost increases

Customizations and upgrades can drive up costs, so it’s important to stay mindful of your initial budget.

 

• More ambiguity

Until the home is completed, you rely on renderings and plans. This makes it more challenging to get a clear sense of the final product.

 

The longer timeline and potential for additional costs mean presale homes aren’t for everyone. But if you prefer to be involved in your home’s design, this type of new construction offers something special.

 

What are the pros and cons of spec homes?

Spec homes are a compelling option for buyers who value convenience and need to move quickly. They offer a predictable, low-stress buying process and let you see exactly what you’re purchasing.

 

Pros of spec homes

• Quick move-in

Spec homes can be move-in ready or nearly complete. They couldn’t be a better fit for buyers who need to move soon but still prefer a new construction home.

 

• Predictable costs

With preselected finishes and a set price, a spec home means you can avoid unexpected expenses.

 

• Simplicity

Since the design decisions have already been made for you, buying a spec home is more straightforward. This is great news if you tend to struggle with decision fatigue.

 

Cons of spec homes

• Limited customization

With a spec home, you accept the layout and finishes as they are, even if they don’t entirely reflect your preferences.

 

• Limited lot options 

Spec homes are built on lots chosen by the builder, so you might not get your preferred location.

 

• Potential compromises

While they’re certainly functional, spec homes may lack the special features or upgrades you might prioritize in a presale.

Granted, you may have to sacrifice some level of personalization when you choose a spec home. But this type of new construction is a practical and efficient, still elegant solution for many buyers. 

 

How to choose between presale and spec homes

When deciding between a presale and a spec home, you’ll want to ask yourself a series of important questions:

 

• Do I want a home that reflects my personal style?
• What kind of a budget am I working with?
• Am I willing to wait for construction to finish?
• Or do I need something move-in ready with fewer decisions to make?

 

You may want a presale home if:

 

• You value customization.
• You’re not in a rush.
• You can accept the possibility of delays.

 

On the other hand, you may prefer a spec home if:

 

• You need a home quickly.
• You prefer a simpler, faster homebuying experience.
• You already like the builder’s design choices.

 

Both presale and spec homes have their benefits. By carefully considering your timeline, budget, and design preferences, you can find a stunning new construction home that perfectly suits your needs and lifestyle.